St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1887-10-01
THE BANKING LAW.
State Bankers Opposed to the Re-
cent Act of Legislation.

cent Act of Legislation.
Representatives of private banks
throughout the state of Minnesota met
at the Merchants yesterday to take steps
to have test made of the law passed by
the last legislature, requiring them to
become incorporated institutions, with a
capital of not less than $4,000. 1t was
stated that there were upwards of $50 of
these banks i'll the state whose capital
aggregated upwards OF 81, 500, 900, and
and thatthe present movement had been
Inaugurated in the interest of the ma
tiOnal banks, who were enviouS of the
prosperity OF the private concerns. One
Of the prime movers in agitating the con-
stltutiOnality of the new law was Thomas
w. Gileland, of Window, and he char
acteriZed the new law as merely dodge
of the comptroller of the currency
to help out favored National banks.
''These private banks,'' said Mr.. Gille-
land, scattered as they are all over the
state are the best of friends of the farm
erS in their vicinity, for they can at
once let them have money when needed
without any Of the circumlocution now
practlced by the National banks. Be-
sides, take man who was conducting
a private bank in a small town. He
knew exactly the value of any security
offered him without having hunt made
for titles OF other formalities, and could
carry on some other business at the
same time. He knew of prOprietors of
country stores who carried on business
as private bankers as well, api natur-
ally looked after their interests person.
ally. Now by the
TERMS OF THE NiN LAW.
1t was proposed to make such a man
take IN two partners, and thus render
himself liable to be pIundered bv
sharks" 1t has been claimed that #
was necessary to incorporate the private
banks III order that a register of their
number and capital might be obtained.
put that was mere subterfuge. Every
Dody present knew that the amount of
capital interested was shown in the
DOCKS OF the assessors. and the bankers
were taxed according to their sworn re-.
turns to those officials. There was no
doubt in his mind that fairer and more
correct reErns were given the assessors
by private banke&s than char
~aeaer1zed similar reports made by
the national banks to the comptroller
of the currency One effect of the en-
fOrcement of the law would be to drive
amajOrity of the small banks out of
business, for what would give one man.
fair living might not yield suitable re-
turns for the support of three or four
men belonging to an Incorporated insti-
tuition. AnotherS argument against the
law was that it was eX post facto, and
therefore utterly at variance with the
constitution, and this would be demon
strated If the matter could only be
brought into court.
As result of the discussion, a COM
mittee was appointed to, make state
ment embodying
THE OBJECTIONS
to the existing law concerning private
bankers. and these were set forth sub
stantially as follows:
First-Was the vote 900 by which said act
was passed, being less than a tWo-thirds vote
OF the legislature, sufficient to meet the re-
qdirements of section ID, article 8. of Mime
sofas constitution?
state constitution in its provisions diyestipg
private banks of their business insignia. title
and name by which they are known in bust
ness dtfairs, which they deem vested rights?
ThIrd-Can private banks under the terms
of said act make drafts ON Incorporated
banks, placing the name of said Incorporated
banks on their drafts?
Fourth-ls said act in its scope and tenor
as affecting the property interests and rights
OF private banks now existing, in accordance
with the spirit and tenor of our constitu-
ton?
1t was further expressed as the sense
OF the meeting that theauestionS raised
should be carried, if necessary, to the
court of last resort, and all present
pledged financial aid for this object.